After in excess of 10 market deals concluded last week, the situation in India proved to be drastically different this week with prices down by as much as USD 25/LT LDT and the task of garnering any sort of offers from local buyers was proving particularly challenging for cash buyers.
Indeed, after the multitude of high priced deals that greeted the 3^ear, there will certainly be several owners and cash buyers sweating on those vessels that have yet to deliver and hoping that all gets performed smoothly.
Steel prices have taken the major hit over the past few weeks, bottoming out (as most in the industry are hoping) by almost INR 1,500 lower after some two weeks of consecutive falls. In contrast however, the currency has remained stable, with the rupee trading at a comparative^ healthy INR 53 to the US Dollar (having earlier in the year been up as high as 55 to the dollar).
The one market deal done for the week concerned that of Glory Shipping of Singapore controlled bulker MV PIONEER II (4,701 LDT), going for a speculative USD 410/LT LDT. With most small bulk carriers now well below LISD 400/LT LDT, the relevant cash buyer is taking something of a chance with the price paid.
Source: Steelguru. 12 February 2013